EX-4.38




 Exhibit 4.38 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”), is entered into effective as of December 7, 2020 (the
“Effective Date”), by and between Mereo BioPharma Group plc, a company incorporated in England and Wales (the “Company”) and Suba Krishnan (“Executive” and, together with the
Company, the “Parties”). 
 WHEREAS, the Company desires to assure itself of the services of Executive
by engaging Executive to perform services as an employee of the Company under the terms hereof; and 
 WHEREAS, Executive desires to
provide services to the Company on the terms herein provided. 
 NOW, THEREFORE, in consideration of the foregoing, and for other
good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

1. Employment. 

(a) General. The Company shall employ Executive upon the terms and conditions provided herein effective as of the Effective
Date. 
 (b) Position and Duties. Effective as of the Effective Date, Executive: (i) shall serve as Senior Vice
President, Clinical Development, with responsibilities, duties, and authority usual and customary for such position, subject to direction by the Chief Executive Officer of the Company; (ii) shall report directly to the Chief Executive Officer
of the Company; and (iii) agrees promptly and faithfully to comply with all present and future policies, requirements, rules and regulations, and reasonable directions and requests, of the Company in connection with the business of the Company.
At the request of the Company, Executive shall serve the Company and/or its subsidiaries and affiliates in such other capacities in addition to the foregoing as the Company shall designate, provided that such additional capacities are consistent
with and do not limit or impede Executive’s position as the Senior Vice President, Clinical Development of the Company. In the event that Executive serves in any one or more of such additional capacities, Executive’s compensation shall not
automatically be increased on account of such additional service. 
 (c) Principal Office. Executive shall initially perform
services for the Company (i) at Executive’s home office; (ii) from one of the Company’s offices for up to four days a week or for five days a week with Executive’s consent; or (iii) with the Company’s consent, at
any other place in connection with the fulfillment of Executive’s role with the Company; provided, however, that the Company may from time to time require Executive to travel temporarily to other locations in connection with the Company’s
business. 
 (d) Exclusivity. Except with the prior written approval of the Company’s Chief Executive Officer (the
“CEO”) (which the CEO may grant or withhold in the CEO’s sole and absolute discretion), Executive shall devote Executive’s full working time, attention, and energies to the business of the Company, except during any
paid vacation or other excused absence periods. Notwithstanding the foregoing, Executive may, without violating this Section 1(d), (i) as a passive 

  
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investment, own publicly traded securities in such form or manner as will not require any services by Executive in the operation of the entities in which such securities are owned;
(ii) engage in charitable and civic activities; or (iii) engage in other personal passive investment activities, in each case, so long as such interests or activities do not materially interfere to the extent such activities do not,
individually or in the aggregate, interfere with or otherwise prevent the performance of Executive’s duties and responsibilities hereunder. Executive may also serve as a member of the board of directors or board of advisors of another
organization provided (i) such organization is not a competitor of the Company; (ii) Executive receives prior written approval from the CEO; and (iii) such activities do not individually or in the aggregate interfere with the
performance of Executive’s duties under this Agreement, violate the Company’s standards of conduct then in effect, or raise a conflict under the Company’s conflict of interest policies. 

2. Term. The period of Executive’s employment under this Agreement shall commence on the Effective Date and shall continue
until Executive’s employment with the Company is terminated pursuant to Section 5. The phrase “Term” as used in this Agreement shall refer to the entire period of employment of Executive by the Company. 

3. Compensation and Related Matters. 

(a) Annual Base Salary. During the Term, Executive shall receive a base salary at the rate of $390,000 per year (as may
be increased from time to time, the “Annual Base Salary”), subject to withholdings and deductions, which shall be paid to Executive in accordance with the customary payroll practices and procedures of the Company and pro-rated for any partial employment with the Company during the calendar year. Such Annual Base Salary shall be reviewed by the CEO, and, as applicable, the Board of Directors of the Company (the
“Board”) and/or a committee thereof, not less than annually. 
 (b) Annual Bonus. 

(i) Executive shall be eligible to receive a discretionary annual bonus commencing for performance in fiscal year 2021 based on
Executive’s achievement of performance objectives established by the Board, a committee thereof and/or the CEO, such bonus to be targeted at 40% of Executive’s Annual Base Salary (the “Annual Bonus”).
Any Annual Bonus approved by the Board, a committee thereof and/or the CEO shall be paid at the same time annual bonuses are paid to other executives of the Company generally, subject to Executive’s continuous employment through the date of
payment (and Executive not having given notice of intent to terminate Executive’s employment with the Company).  
 (ii)
In lieu of an Annual Bonus for 2020 performance pursuant to Section 2(b)(i) above, Executive shall receive a one-time bonus of $90,000 (the “2020 Bonus”), which shall be payable in
a lump sum, less applicable withholdings and deductions when annual bonuses for 2020 are paid to other employees of the Company (but in no case later than 60 days following the conclusion of the 2020 fiscal year), subject to Executive’s
continued employment with the Company through such date. If Executive is terminated by the Company with Cause (as defined below) or Executive resigns from the Company other than for Good Reason (as defined below), in either case, prior to the first
anniversary of the Effective Date, Executive shall repay to the Company the full gross amount of the 2020 Bonus. The Company may (but is not required) to 

  
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withhold the applicable repayment amount from any final pay, on an after-tax basis, that may be owed to Executive upon the termination of Executive’s
employment in the event Executive is responsible for such repayment. 
 (c) Sign-On
Bonus. Executive shall be entitled to receive a one-time sign on bonus of $150,000 (the “Sign-On Bonus”) which shall be payable in a lump
sum, less applicable withholdings and deductions, within five days of the Effective Date. If Executive is terminated by the Company with Cause or Executive resigns from the Company other than for Good Reason, in either case, prior to the first
anniversary of the Effective Date, Executive shall repay to the Company the full gross amount of the Sign-On Bonus, and if Executive is terminated by the Company with Cause or Executive resigns from the
Company other than for Good Reason, in either case, on or following the first anniversary of the Effective Date and before the second anniversary of the Effective Date, Executive shall repay to the Company 50% of the full gross amount of the Sign-On Bonus. The Company may (but is not required) to withhold the applicable repayment amount from any final pay, on an after-tax basis, that may be owed to Executive upon
the termination of Executive’s employment in the event Executive is responsible for such repayment. 
 (d) Benefits.
Executive shall be entitled to participate in such employee and executive benefit plans and programs as the Company may from time to time offer to provide to its executives, subject to the terms and conditions of such plans. Notwithstanding the
foregoing, nothing herein is intended, or shall be construed, to require the Company to institute or continue any particular plan or benefit. Executive shall also be entitled with respect to any acts or failures to act during her employment to
liability insurance coverage on the same basis as other managers and officers of the Company. 
 (e) Business Expenses. The
Company shall reimburse Executive for all reasonable, documented, out-of-pocket travel and other business expenses incurred by Executive in the performance of
Executive’s duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as are in effect from time to time. Executive shall also be reimbursed any legal expenses associated with the
review of the terms and conditions of her employment by the Company in an amount not to exceed $2,500 following the submission to the Company of appropriate documentation. 

(f) Vacation. Executive will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect
from time to time. 
 4. Equity Awards. Subject to approval by the Board at the next meeting of the Board following the
Effective Date, the Company shall grant to Executive an option (the “Option”) to purchase 200,000 American Depositary Shares (“ADSs”) of the Company at an exercise price per share equal to the closing
price per share of the ADSs on the date immediately before the date of grant, or if such date is not a trading day, on the most recent trading day before such date. The Option will vest as to
1/4th of the ADSs subject to the Option on the first anniversary of the grant (the “First Year Anniversary”), and as to the remaining ADSs in equal monthly installments
over the three year period following the First Year Anniversary, subject to Executive’s continued service to the Company or an affiliate thereof on each applicable vesting date. The Option is subject to the terms and conditions of the
Company’s 2019 Equity Incentive Plan and an award 

  
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agreement to be entered into between Executive and the Company (collectively, the “Equity Documents”). Executive shall be eligible to receive future annual grants of
equity awards as determined in the discretion of the Board. 
 5. Termination.

(a) At-Will Employment. The Company and Executive acknowledge that Executive’s
employment is and shall continue to be at-will, as defined under applicable law. This means that it is not for any specified period of time and, subject to any ramifications under Section 6 of this
Agreement, can be terminated by Executive or by the Company at any time, with or without advance notice, and for any or no particular reason or cause. It also means that Executive’s job duties, title, and responsibility and reporting level,
work schedule, compensation, and benefits, as well as the Company’s personnel policies and procedures, may be changed with prospective effect, with or without notice, at any time in the sole discretion of the Company (subject to any
ramification such changes may have under Section 6 of this Agreement). This “at-will” nature of Executive’s employment shall remain unchanged during Executive’s tenure as an employee
and may not be changed, except in an express writing signed by Executive and a duly-authorized officer of the Company. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, award or
compensation other than as provided in this Agreement or pursuant to applicable law. 
 (b) Notice of Termination. During the
Term, any termination of Executive’s employment by the Company or by Executive (other than by reason of death) shall be communicated by written notice (a “Notice of Termination”) from one Party hereto to the other Party
hereto (i) indicating the specific termination provision in this Agreement relied upon, if any, (ii) setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment
under the provision so indicated, and (iii) specifying the Date of Termination (as defined below). The failure by the Company to set forth in the Notice of Termination all of the facts and circumstances which contribute to a showing of Cause
(as defined below) shall not waive any right of the Company hereunder or preclude the Company from asserting such fact or circumstance in enforcing its rights hereunder. 

(c) Date of Termination. For purposes of this Agreement, “Date of Termination” shall mean the date of
the termination of Executive’s employment with the Company specified in a Notice of Termination. 
 (d) Deemed
Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from all offices and board memberships, if any, then held with the Company or any of its affiliates, and, at the
Company’s request, Executive shall execute such documents as are necessary or desirable to effectuate such resignations. 
 6.
Consequences of Termination. 
 (a) Payments of Accrued Obligations upon all Terminations of Employment. Upon a
termination of Executive’s employment for any reason, Executive (or Executive’s estate or legal representative, as applicable) shall be entitled to receive: (i) any portion of Executive’s


  
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Annual Base Salary earned through Executive’s Date of Termination not theretofore paid, (ii) any expenses owed to Executive under Section 3, (iii) any accrued but unused paid time-off owed to Executive, and (iv) any amount arising from Executive’s participation in, or benefits under, any employee benefit plans, programs, or arrangements under Section 3, which amounts shall
be payable in accordance with the terms and conditions of such employee benefit plans, programs, or arrangements. Except as otherwise set forth in Sections 6(b) and (c), the payments and benefits described in this Section 6(a) shall be the only
payments and benefits payable in the event of Executive’s termination of employment for any reason. 
 (b) Severance Payments
upon Covered Termination Outside a Change in Control Period. If, during the Term, Executive experiences a Covered Termination outside of a Change in Control Period (each as defined below), then in addition to the payments and benefits described
in Section 6(a), the Company shall, subject to Executive’s delivery to the Company of a waiver and release of claims agreement substantially in the form of Exhibit A hereto (but updated to the extent deemed by the Company to be
necessary to reflect any changes in applicable law) (the “Release”) that becomes effective and irrevocable in accordance with Section 10(d) and subject to Executive’s continued compliance with the Confidentiality
Agreement (as defined below), provide Executive with the following: 
 (i) The Company shall continue to pay
Executive the Annual Base Salary at the rate in effect immediately prior to the Date of Termination during the period of time commencing on the Date of Termination and ending on the six (6)-month anniversary thereof, payable in substantially equal
installments in accordance with the Company’s standard payroll policies, less applicable withholdings, with such installments to commence on the first payroll date following the date the Release becomes effective and irrevocable and the first
installment to include any amount that would have been paid had the Release been effective and irrevocable on the Date of Termination. 

(ii) During the period commencing on the Date of Termination and ending on the six (6)-month anniversary thereof or, if
earlier, the date on which Executive becomes eligible for comparable replacement coverage under a subsequent employer’s group health plan (in any case, the “Non-CIC COBRA Period”),
subject to Executive’s valid election to continue healthcare coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder, the Company shall, in its sole
discretion, either (A) continue to provide to Executive and Executive’s dependents, at the Company’s sole expense, or (B) reimburse Executive and Executive’s dependents for coverage under its group health plan (if any) at
the same levels in effect on the Date of Termination; provided, however, that if (1) any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the continuation coverage period to be, exempt from
the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5), (2) the Company is otherwise unable to continue to cover Executive or Executive’s dependents under its group
health plans, or (3) the Company cannot provide the benefit without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then, in any such case, an amount equal to each remaining Company
subsidy shall thereafter be paid to Executive in substantially equal monthly installments over the Non-CIC COBRA Period (or remaining portion thereof). 

  
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 (c) Severance Payments upon Covered Termination During a Change in Control
Period. If, during the Term, Executive experiences a Covered Termination during a Change in Control Period, then, in addition to the payments and benefits described in Section 6(a) (and in lieu of any payments and benefits set forth in
Section 6(b)), the Company shall, subject to Executive’s delivery to the Company of the Release that becomes effective and irrevocable in accordance with Section 10(d) and subject to Executive’s continued compliance with the
Confidentiality Agreement, provide Executive with the following: 
 (i) The Company shall pay to Executive an amount
equal to Executive’s Annual Base Salary as in effect immediately prior to the Date of Termination. Such amount will be subject to applicable withholdings and payable in a single lump sum cash payment on the first regular payroll date following
the date the Release becomes effective and irrevocable in accordance with Section 10(d). 
 (ii) During the
period commencing on the Date of Termination and ending on the first anniversary thereof or, if earlier, the date on which Executive becomes eligible for comparable replacement coverage under a subsequent employer’s group health plan (in any
case, the “CIC COBRA Period”), subject to Executive’s valid election to continue healthcare coverage under Section 4980B of the Code and the regulations thereunder, the Company shall, in its sole discretion, either
(A) continue to provide to Executive and Executive’s dependents, at the Company’s sole expense, or (B) reimburse Executive and Executive’s dependents for coverage under its group health plan (if any) at the same levels in
effect on the Date of Termination; provided, however, that if (1) any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the continuation coverage period to be, exempt from the application of
Section 409A under Treasury Regulation Section 1.409A-1(a)(5), (2) the Company is otherwise unable to continue to cover Executive or Executive’s dependents under its group health plans, or
(3) the Company cannot provide the benefit without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then, in any such case, an amount equal to each remaining Company subsidy shall
thereafter be paid to Executive in substantially equal monthly installments over the CIC COBRA Period (or remaining portion thereof). 

(iii) Cause any unvested equity awards that vest solely based on the passage of time, including any stock options or
restricted stock awards, held by Executive as of the Date of Termination, to become fully vested and, if applicable, exercisable, and cause all restrictions and rights of repurchase on such awards to lapse with respect to all of the ADSs or ordinary
shares of the Company subject thereto. 
 (d) No Other Severance. Except as otherwise approved by the Board, the provisions of
this Section 6 shall supersede in their entirety any severance payment provisions in any severance plan, policy, program, or other arrangement maintained by the Company. 

(e) No Requirement to Mitigate; Survival. Executive shall not be required to mitigate the amount of any payment provided for
under this Agreement by seeking other employment or in any other manner. Notwithstanding anything to the contrary in this Agreement, the termination of Executive’s employment shall not impair the rights or obligations of any Party. 

  
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 (f) Definition of Cause. For purposes hereof, “Cause”
shall mean any one of the following: (i) Executive engaging in any act of theft or fraud concerning, or misappropriation of, funds or other assets of the Company or any of its affiliates, or other acts of dishonesty, willful misconduct or gross
negligence involving the property or affairs of the Company or its affiliates; (ii) a conviction (by trial, upon a plea or otherwise) of Executive or the admission of guilt via nolo contendere by Executive of any felony or misdemeanor
involving moral turpitude; (iii) Executive’s willful violation of any material policy or procedure of the Company; (iv) Executive’s material breach of the fiduciary duties owed by an officer of the Company to the Company under
applicable law; (v) Executive’s willful failure (other than due to mental or physical incapacity or other disability recognized under applicable law) or refusal to obey and execute all reasonable and lawful directions given by or under the
authority of the Company; (vi) Executive’s willful and material breach of any of the terms and conditions of this Agreement; (vii) Executive’s willful and material breach of any restrictive covenants by which Executive is bound
under this Agreement or any other agreement with the Company or any of its affiliates. Notwithstanding the foregoing, if there exists a circumstance that constitutes “Cause” as set forth above which is capable of being cured by Executive,
the Company will promptly notify Executive in writing of such event (which notification shall specify in reasonable detail the conduct that the Company alleges to constitute Cause and the specific actions, if any, which the Company believes
Executive must take to cure such events or conditions) and Executive will have 30 days from the date such written notice is given to cure such events (if curable), and, if cured, such events or conditions will be deemed not to constitute Cause
hereunder. For the purposes of this definition, no act or failure to act on Executive’s part shall be considered “willful” unless it is done or omitted to be done by Executive in bad faith and without reasonable belief that the act or
failure to act was in the best interest of the Company. 
 (g) Definition of Change in Control. “Change in
Control” means (i) the acquisition by any person or group of affiliated or associated persons of more than fifty percent (50%) of the outstanding capital stock of the Company or voting securities representing more than fifty
percent (50%) of the total voting power of outstanding securities of the Company; (ii) the consummation of a sale, exclusive license or other disposition of all or substantially all of the assets of the Company to a third party; (iii) the
consummation of any merger involving the Company in which, immediately after giving effect to such merger, less than a majority of the total voting power of outstanding stock of the surviving or resulting entity is then “beneficially
owned” (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the shareholders of the Company, as applicable, immediately prior to such merger. For
the avoidance of doubt and notwithstanding anything herein to the contrary, in no event shall a transaction constitute a “Change in Control” if: (A) its sole purpose is to change the jurisdiction of the Company’s incorporation;
(B) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction; or (C) it is effected primarily for the
purpose of financing the Company with cash (as determined by the Board without regard to whether such transaction is effectuated by a merger, equity financing, or otherwise). Notwithstanding the foregoing, if a Change in Control would give rise to a
payment or settlement event that constitutes “nonqualified deferred compensation,” the transaction or event constituting the Change in Control must also constitute a “change in control event” (as defined in Treasury Regulation §1.409A-3(i)(5)) in order to give rise to the payment or settlement event, to the extent required by Section 409A. 

  
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 (h) Definition of Change in Control Period. For purposes hereof,
“Change in Control Period” shall mean the period commencing on a Change in Control and ending 12 months after such Change in Control. 

(i) Definition of Covered Termination. For purposes hereof, “Covered Termination” shall mean the
termination of Executive’s employment by the Company without Cause or by Executive for Good Reason, and shall not include a termination due to Executive’s death or disability. 

(j) Definition of Good Reason. For purposes hereof, “Good Reason” means Executive’s resignation
from employment with the Company after the occurrence, without Executive’s written consent, of any of the following: (i) a material reduction in Executive’s authorities, duties and responsibilities; (ii) a material reduction by
the Company in Executive’s Annual Base Salary from Executive’s Annual Base Salary in effect immediately prior to such reduction, except in connection with a reduction in salary affecting all senior management employees of the Company; or
(iii) a relocation of Executive’s office that increases Executive’s one-way commute by more than thirty-five (35) miles, provided that if Executive’s office as of such relocation is
Executive’s home office, such commute shall be measured from Executive’s home office as of the Effective Date, or a relocation of Executive’s office to a location outside of New Jersey or New York, except that required travel on the
Company’s business to an extent substantially consistent with Executive’s historical business travel obligations shall not be considered a relocation. Notwithstanding the foregoing, a resignation shall not be for “Good Reason”
unless the event or condition giving rise to such resignation continues more than thirty (30) days following Executive’s written notice of such condition provided to the Company within sixty (60) days of the first occurrence of such
event or condition and such resignation is effective within thirty (30) days following the end of such notice period. 
 7.
Assignment and Successors. The Company shall assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise). This Agreement shall
be binding upon and inure to the benefit of the Company, Executive, and their respective successors, assigns, personnel, and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. None of
Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will, operation of law, or as otherwise provided herein. 

8. Miscellaneous Provisions. 

(a) Confidentiality Agreement. As a condition to the effectiveness of this Agreement, Executive will execute and deliver to the
Company contemporaneously herewith the Employee Proprietary Information and Inventions Assignment Agreement attached hereto as Exhibit B (the “Confidentiality Agreement”). Executive agrees to abide by the terms of the
Confidentiality Agreement, which are hereby incorporated by reference into this Agreement. Executive acknowledges that the provisions of the Confidentiality Agreement will survive the termination of Executive’s employment and the termination of
the Term for the periods set forth in the Confidentiality Agreement. 

  
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 (b) Non-Solicitation of Employees.
For a period of one year following Executive’s Date of Termination, Executive shall not, either directly or indirectly (i) solicit for employment by any individual, corporation, firm, or other business, any employees, consultants,
independent contractors, or other service providers of the Company or any of its affiliates, or (ii) solicit any employee or consultant of the Company or any of its affiliates to leave the employment or consulting of or cease providing services
to the Company or any of its affiliates; provided, however, that the foregoing clauses (i) and (ii) shall not apply to a general advertisement or solicitation (or any hiring pursuant to such advertisement or solicitation) that is
not specifically targeted to such employees or consultants. 
 (c) Governing Law. This Agreement shall be governed, construed,
interpreted, and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the State of New Jersey, without giving effect to any principles of conflicts of law, whether of the State of New Jersey or any
other jurisdiction, and where applicable, the laws of the United States, that would result in the application of the laws of any other jurisdiction. 

(d) Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
 (e) Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. Signatures delivered by facsimile shall be deemed effective for all
purposes. 
 (f) Entire Agreement. The terms of this Agreement, together with the Confidentiality Agreement and the Equity
Documents, are intended by the Parties to be the final expression of their agreement with respect to the employment of Executive by the Company and supersede all prior understandings and agreements, whether written or oral, regarding
Executive’s service to the Company, including any prior offer letter or employment agreement between Executive and the Company. The Parties further intend that this Agreement, together with the Confidentiality Agreement and the Equity
Documents, shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement or the
Confidentiality Agreement. Notwithstanding the foregoing, in the event of any conflict between the terms of the Confidentiality Agreement and the terms of this Agreement, the terms of this Agreement shall prevail. 

(g) Amendments; Waivers. This Agreement may not be modified, amended, or terminated except by an instrument in writing signed by
Executive and a duly authorized representative of the Company. By an instrument in writing similarly executed, Executive or a duly authorized officer of the Company, as applicable, may waive compliance by the other Party with any specifically
identified provision of this Agreement that such other Party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity. 

  
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 (h) Dispute Resolution. To ensure the timely and economical resolution of
disputes that arise in connection with this Agreement, Executive and the Company agree that, except as excluded herein, any and all controversies, claims and disputes arising out of or relating to this Agreement, including without limitation any
alleged violation of its terms or otherwise arising out of the Parties’ relationship, shall be resolved solely and exclusively by final and binding arbitration held in San Mateo County, California through JAMS in conformity with the
then-existing JAMS employment arbitration rules, which can be found at https://www.jamsadr.com/rules-employment-arbitration/. The Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. shall govern the interpretation and enforcement of
this arbitration clause. All remedies available from a court of competent jurisdiction shall be available in the arbitration; provided, however, in the event of a breach of Sections 8(a) or 8(b), the Company may request relief from a court of
competent jurisdiction if such relief is not available or not available in a timely fashion through arbitration as determined by the Company. The arbitrator shall: (a) provide adequate discovery for the resolution of the dispute; and
(b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall award the prevailing Party attorneys’ fees and expert fees, if any.
Notwithstanding the foregoing, it is acknowledged that it will be impossible to measure in money the damages that would be suffered if the Parties fail to comply with any of the obligations imposed on them under Sections 8(a) and 8(b), and that in
the event of any such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law. Any such person shall, therefore, be entitled to seek injunctive relief, including specific performance, to enforce such
obligations, and if any action shall be brought in equity to enforce any of the provisions of Sections 8(a) and 8(b), none of the Parties shall raise the defense, without a good faith basis for raising such defense, that there is an adequate remedy
at law. Executive and the Company understand that by agreement to arbitrate any claim pursuant to this Section 8(h), they will not have the right to have any claim decided by a jury or a court, but shall instead have any claim decided through
arbitration. Executive and the Company waive any constitutional or other right to bring claims covered by this Agreement other than in their individual capacities. Except as may be prohibited by applicable law, the foregoing waiver includes the
ability to assert claims as a plaintiff or class member in any purported class or collective action or representative proceeding. Nothing herein shall limit Executive’s ability to pursue claims for workers compensation or unemployment benefits
or pursue other claims which by law cannot be subject to mandatory arbitration. 
 (i) Enforcement. If any provision of this
Agreement is held to be illegal, invalid, or unenforceable under present or future laws, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never
comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of such illegal, invalid, or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be
legal, valid, and enforceable. 
 (j) Withholding. The Company shall be entitled to withhold from any amounts payable under
this Agreement any federal, state, local, or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of
withholding shall arise. 

  
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 (k) Whistleblower Protections and Trade Secrets. Notwithstanding anything to
the contrary contained herein, nothing in this Agreement prohibits Executive from reporting possible violations of federal law or regulation to any United States governmental agency or entity in accordance with the provisions of and rules
promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of state or federal law or regulation (including the right to receive
an award for information provided to any such government agencies). Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in this Agreement: (i) Executive shall not be in breach of this Agreement, and
shall not be held criminally or civilly liable under any federal or state trade secret law (x) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the
purpose of reporting or investigating a suspected violation of law, or (y) for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and
(ii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding,
if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order. 

9. Golden Parachute Excise Tax. 

(a) Best Pay. Any provision of this Agreement to the contrary notwithstanding, if any payment or benefit Executive would receive
from the Company pursuant to this Agreement or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this sentence, be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount (as defined below). The “Reduced Amount” will be either
(A) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (B) the entire Payment, whichever amount after taking into account all applicable federal, state,
and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results
in Executive’ s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is
required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (A) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the
greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). Notwithstanding the
foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A (as defined below) that would not otherwise be subject to taxes pursuant to
Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (1) as a first priority, the modification
shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (2) as a second priority, Payments that are contingent on future events
(e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (3) as a third priority, Payments that are “deferred compensation” within the meaning of
Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A. 

  
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 (b) Accounting Firm. The accounting firm engaged by the Company for general
tax purposes as of the day prior to the Change in Control will perform the calculations set forth in Section 9(a). If the firm so engaged by the Company is serving as the accountant or auditor for the acquiring company, the Company will appoint
a nationally recognized accounting firm to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such firm required to be made hereunder. The accounting firm engaged to make the
determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company within 30 days before the consummation of a Change in Control (if requested at that time by the Company) or such other time as
requested by the Company. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it will furnish the Company with documentation reasonably acceptable
to the Company that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder will be final, binding and conclusive upon the Company and Executive. 

10. Section 409A. 

(a) General. The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from
Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date,
(“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. Notwithstanding any provision of this Agreement to the
contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with Executive to adopt such amendments to this Agreement or adopt other
policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including,
without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A; however, this Section 10(a) shall not
create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company (A) have any liability for failing to do so, or (B) incur or indemnify Executive for any
taxes, interest or other liabilities arising under or by operation of Section 409A. 
 (b) Separation from Service,
Installments and Reimbursements. Notwithstanding any provision to the contrary in this Agreement: (i) no amount that constitutes “deferred compensation” under Section 409A shall be payable pursuant to Section 6
unless the termination of Executive’s employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations
(“Separation from Service”); (ii) for purposes of Section 409A, Executive’s right to receive installment payments shall be treated as a right to receive a series of separate and distinct payments; and (iii) to
the extent that any reimbursement of expenses or in-kind benefits constitutes “deferred compensation” under Section 409A, such reimbursement or benefit shall be provided no later than December
31st of the year 

  
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following the year in which the expense was incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year. The amount of
any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year. 

(c) Specified Employee. Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the
time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is
required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the
six-month period measured from the date of Executive’s Separation from Service with the Company or (ii) the date of Executive’s death. Upon the first business day following the expiration of the
applicable Section 409A period, all payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement
shall be paid as otherwise provided herein. 
 (d) Release. Notwithstanding anything to the contrary in this Agreement, to the
extent that any payments due under this Agreement as a result of Executive’s termination of employment are subject to Executive’s execution and delivery of the Release, (i) if Executive fails to execute the Release on or prior to the
Release Expiration Date (as defined below) or timely revokes Executive’s acceptance of the Release thereafter, Executive shall not be entitled to any payments or benefits otherwise conditioned on the Release, and (ii) in any case where
Executive’s Date of Termination and the Release Expiration Date fall in two separate taxable years, any payments required to be made to Executive that are conditioned on the Release and are treated as nonqualified deferred compensation for
purposes of Section 409A shall be made in the later taxable year. For purposes of this Section 10(d), “Release Expiration Date” shall mean the date that is 21 days following the date upon which the Company delivers
the Release to Executive, or, in the event that Executive’s termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment
Act of 1967), the date that is 45 days following such delivery date. 
 11. Employee Acknowledgement. Executive
acknowledges that Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered
into this Agreement freely based on Executive’s own judgment. 
 [Signature Page Follows] 

  
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 The Parties have executed this Agreement as of the date first set forth above. 

 

			
	MEREO BIOPHARMA GROUP PLC
		
	By:	 	  

	Name: 	 	
                     
                    

	Title: 	 	  

	
	EXECUTIVE
		
	By:	 	
                     
                                        


	Name: Suba Krishnan













 EXHIBIT A 

RELEASE OF CLAIMS 
 This
Release of Claims (“Release”) is entered into as of             , 20__, between Suba Krishnan (“Executive”) and Mereo BioPharma Group
plc, a company incorporated in England and Wales (the “Company” and, together with Executive, the “Parties”), effective eight days after Executive’s signature hereto (the “Effective
Date”), unless Executive revokes Executive’s acceptance of this Release as provided in Paragraph 1(c), below. 
 1.
Executive’s Release of the Company. Executive understands that by agreeing to this Release, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its respective employees or other agents for any
reason whatsoever based on anything that has occurred as of the date Executive signs this Release. 
 (a) On behalf of
Executive and Executive’s heirs and assigns, Executive hereby releases and forever discharges the “Releasees” hereunder, consisting of the Company, and each of its owners, affiliates, divisions, predecessors, successors,
assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which
Executive now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims
arising out of, based upon, or relating to Executive’s hire, employment, remuneration or resignation by the Releasees, or any of them, including Claims arising under federal, state, or local laws relating to employment, Claims of any kind that
may be brought in any court or administrative agency, any Claims arising under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621, et seq.; Title VII of the Civil Rights Act of 1964, as amended by
the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; the Equal Pay Act, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans
with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et seq.; the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification
Act, 29 U.S.C. § 2101 et seq. the Fair Labor Standards Act, 29 U.S.C. § 215 et seq., the Sarbanes-Oxley Act of 2002; the California Labor Code; the employment and civil rights laws of California; the New Jersey Law Against Discrimination,
the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, the New Jersey Wage Payment Law, the New Jersey Wage and Hour Law, the New Jersey Equal Pay Act, and retaliation claims under the New Jersey Workers’
Compensation Law; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of
emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages,
injunctive relief and attorney’s fees. 

  
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 (b) Notwithstanding the generality of the foregoing, Executive does not
release the following claims: 
 (i) Claims for unemployment compensation or any state disability insurance benefits
pursuant to the terms of applicable state law; 
 (ii) Claims for workers’ compensation insurance benefits under the
terms of any worker’s compensation insurance policy or fund of the Company; 
 (iii) Claims to continued participation
in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA; 
 (iv) Claims to any
benefit entitlements vested as the date of Executive’s employment termination, pursuant to written terms of any Company employee benefit plan; 

(v) Claims for indemnification under any indemnification agreement with the Company, the Company’s Articles of
Association, California Labor Code Section 2802 or any other applicable law; and 
 (vi) Executive’s right to
bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment. 

(c) In accordance with the Older Workers Benefit Protection Act of 1990, Executive has been advised of the following: 

(i) Executive has the right to consult with an attorney before signing this Release; 

(ii) Executive has been given at least [twenty-one (21)] days to consider this
Release; 
 (iii) Executive has seven (7) days after signing this Release to revoke it, and Executive will not receive
the severance benefits provided by that certain Employment Agreement between the Parties (the “Employment Agreement”) unless and until such seven (7) day period has expired. If Executive wishes to revoke this Release,
Executive must deliver notice of Executive’s revocation in writing, no later than 11:59 p.m. Pacific Time on the 7th day following Executive’s execution of this Release to [_________]. 

  
 3 












 (d) EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR
RELEASED PARTY.” 
 BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS
WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 2. Executive Representations. Executive represents
and warrants that: 
 (a) Executive has returned to the Company all Company property in Executive’s possession; 

(b) Executive is not owed wages, commissions, bonuses or other compensation from the Company (other than any other benefits
recognized under law), other than wages through the date of the termination of Executive’s employment and any accrued, unused vacation earned through such date, and any payments that become due under the Employment Agreement; 

(c) During the course of Executive’s employment Executive did not sustain any injuries for which Executive might be
entitled to compensation pursuant to worker’s compensation law or Executive has disclosed any injuries of which Executive is currently, reasonably aware for which Executive might be entitled to compensation pursuant to worker’s
compensation law; and 
 (d) Executive has not initiated any adversarial proceedings of any kind against the Company or
against any other person or entity released herein, nor will Executive do so in the future, except as specifically allowed by this Release. 

3. Severability. The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not
affect the validity or enforceability of any other provision. 
 4. Choice of Law. This Release shall in all respects be governed and
construed in accordance with the laws of the State of New Jersey, including all matters of construction, validity and performance, without regard to conflicts of law principles. 

5. Integration Clause. This Release and the Employment Agreement contain the Parties’ entire agreement with regard to the
separation of Executive’s employment, and supersede and replace any prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by
Executive and a duly authorized officer or director of the Company. 

  
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 6. Execution in Counterparts. This Release may be executed in counterparts with the
same force and effectiveness as though executed in a single document. Facsimile signatures shall have the same force and effectiveness as original signatures. 

7. Intent to be Bound. The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and
provisions; and intend and agree that it is final and binding on all Parties. 

  
 5 












 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the
foregoing on the dates shown below. 
  

					
	EXECUTIVE	  		  	MEREO BIOPHARMA GROUP PLC
			
	  
	  		  	  

		  		  	 By:
 Title:

			
	Date: ______________________	  		  	Date: _____________________


  
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 EXHIBIT B 

CONFIDENTIALITY AGREEMENT